The Euro to Collapse? Nicolas Sarkozy Threatened to Pull out of Euro over Greece row
2010 05 15

From: guardian.co.uk


French president Nicolas Sarkozy threatened to pull out of the euro unless Angela Merkel dropped her hostility to the EU´s safety net plan.

French president Nicolas Sarkozy warned of damage to Franco-German relationship if Angela Merkel opposed EU plan

Nicolas Sarkozy threatened to abandon the euro unless Angela Merkel dropped her hostility to the EU´s €750bn safety net for the single currency, sources in Brussels and European capitals said yesterday.

In a confrontation between Europe´s two most powerful politicians, the French president said he would walk out of the talks and warned of lasting damage to the Franco-German relationship unless the German chancellor backed the plans.

"It was a standup argument. He was shouting and bawling," said one official in Brussels. "It was Sarkozy on steroids," said a European diplomat. "He´s always very energetic. This time he was very emotional, too." The French leader banged his fist on the table, according to yesterday´s El País newspaper in Spain.

The showdown, late on Friday last week, kicked off a momentous week in Europe, raising fears – shared strongly in Washington and elsewhere – that the euro could collapse, wreaking untold damage on the world economy and also raising questions about the very future of the EU.

Merkel warned on Thursday that the single currency crisis triggered by Greece´s debt debacle was about much more than money. "If the euro fails, it is not only the currency that fails. Much more fails," she said. "Then Europe fails. The idea of European unity fails."

Sarkozy´s ultimatum came at a Brussels summit of leaders of the 16 countries in the single currency. It was called to rubber-stamp a €110bn rescue package for Greece, but was overtaken by events.

The financial markets were targeting Spain and Portugal and the Greek emergency had escalated into a full-blown euro crisis. After months of handwringing, the leaders had to come up with a much bigger deal to underpin the euro. By 11.30 pm, several sources said, the summit was deadlocked, with Merkel digging in against a rescue fund to which Germany would need to contribute at least €120bn.

Diplomats at the time reported that the summit was going very badly and would continue through the night.

But it ended half an hour later after Sarkozy abruptly announced he was leaving. "Sarko said: ´For me it´s over. I´m stopping this if we can´t agree,´ " said a diplomat.

Sarkozy came downstairs and staged a triumphalist press conference, announcing a radical breakthrough, an agreement that was "95% French".

Source: guardian.co.uk



Related Articles
Euro Falls to Lowest Since Lehman as Breakup Concern Increases
Collapse of the euro is "inevitable": Bailing out the Greek economy futile, says FRENCH banking chief


Latest News from our Front Page

Sand Pirates: ISIS Are America’s 21st Century Terrorist Privateers
2014 11 01
What is ISIS? If you believe govt and corporate propaganda, you still think that ISIS is a grassroots Islamic ideological movement ¨C and with no connection to intelligence agencies like America¡¯s CIA, Britain¡¯s MI6, Turkish (NATO) intelligence, Saudi intelligence, Israeli intelligence, or Pakistan¡¯s ISI. The reality of ISIS is something altogether different¡­ On closer inspection, these marauding paramilitary ISIS gangs are nothing ...
Ancient Stone Circles in Mideast Baffle Archaeologists
2014 11 01
Huge stone circles in the Middle East have been imaged from above, revealing details of structures that have been shrouded in mystery for decades. The Big Circle called J1 is about 390 meters (1,280 feet) in diameter, with an open area created by bulldozing in its interior. Credit: David L. Kennedy, copyright is retained by the Aerial Photographic Archive for Archaeology ...
Sweden Recognizes Palestinian State; Israel Upset
2014 10 31
Sweden on Thursday became the biggest Western European country to recognize a Palestinian state, prompting a strong protest from Israel, which swiftly withdrew its ambassador from Stockholm. The move by Sweden’s new left-leaning government reflects growing international impatience with Israel’s nearly half-century control of the West Bank, east Jerusalem and its blockade of the Gaza Strip. It also comes during increased ...
Fed-Backed Study: How to Brainwash Public into Fearing “Climate Change” Like Ebola
2014 10 31
$84K study seeks ways to make public fear "climate change and overpopulation" The National Science Foundation is funding a study to determine how to brainwash the public into fearing “climate change and overpopulation” as if they were Ebola. The NSF awarded an $84,000 grant to researchers at the State University of New York at Buffalo yesterday to figure out how to make ...
Brain decoder can eavesdrop on your inner voice
2014 10 31
As you read this, your neurons are firing – that brain activity can now be decoded to reveal the silent words in your head TALKING to yourself used to be a strictly private pastime. That’s no longer the case – researchers have eavesdropped on our internal monologue for the first time. The achievement is a step towards helping people who cannot ...
More News »